Latest news with #luxurymarket
Yahoo
3 days ago
- Business
- Yahoo
The Rise Of 'Superfakes': Why Ultra-Realistic Designer Knockoffs Are Disrupting The Luxury Industry
Long gone are the days of easily spotted, plasticky fake bags perched atop folding tables on New York City's Canal Street. Instead, the modern counterfeit bag is a near-perfect replica, or "reps," to use the more cloak and dagger term you'll see in the underground market. And Gen Z's shift to replicas could pressure luxury margins long-term, The Wall Street Journal reported recently, detailing the shadowy market of "superfake" handbags. Market Data Shows Gen Z's Reticence to Buy Luxury The luxury sector may be seeing its first revenue pressures as Gen Z pulls back: According to the Journal, data from consulting firm Bain & Co. shows younger consumers spent $5 billion less on luxury in 2023 than the previous year. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — While the data can't definitively identify the cause, the decline suggests one or both factors: budget constraints, or a growing preference for high-quality counterfeits, according to the Journal's analysis. "People are starting to realize how good these fakes are getting" Online communities of replica handbag enthusiasts have been reacting to the article, including lurkers and buyers from the "Repladiesdesigner" subreddit, which was specifically called out by the Journal: "It's crazy how far 'super fakes' have come and they really are just as good as the original in many cases. The difference in price makes it an easy choice for many," one user writes. "I also bought Hermes authentics in [the] past but now I'm buying high tier reps." "It's true that some people are just starting to realize how good these fakes are getting," writes another Repladiesdesigner member. "Honestly, with [the] right seller and the right eye, you can snag a bag that looks better than [the] original." Trending: $100k+ in investable assets? – no cost, no obligation. Customers use resources like the subreddit to find sellers, who then move their business off Reddit and onto encrypted apps like WhatsApp and Telegram. According to the Journal, this direct-to-consumer sales model floods shipping ports with untraceable single packages, making it much easier to evade the traditional method of bulk interception of counterfeit goods at customs. Resellers Going High-Tech to Spot Superfakes Indeed, superfake handbags are so indiscernible from their luxury counterparts that designer goods resellers like The RealReal (NASDAQ:REAL) have adopted forensic-level authentication methods: According to the Journal report, the company is implementing XRF technology to analyze the metal composition of bag hardware and X-ray machines to inspect internal structures. The RealReal Director of Authentication Hunter Thompson tells the Journal that counterfeiters may flawlessly replicate a bag's exterior but often overlook subtle interior details, like the way a nail head is hammered what of the brands themselves? How are they fighting back? According to the Journal, in the case of the largest luxury brand, the answer is: meekly. LVMH Moët Hennessy Louis Vuitton, the world's largest luxury conglomerate, spent $11 billion on advertising in 2023 but just $45 million on anti-counterfeiting efforts. It may be that fakes are viewed as a foot-in-the-door toward genuine purchases, but the industry should probably wise up to the reality that superfakes are becoming legitimate competitors — and luxury's pricing power may be at risk. Read Next: Here's what Americans think you need to be considered 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? REALREAL (REAL): Free Stock Analysis Report This article The Rise Of 'Superfakes': Why Ultra-Realistic Designer Knockoffs Are Disrupting The Luxury Industry originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
The Rise Of 'Superfakes': Why Ultra-Realistic Designer Knockoffs Are Disrupting The Luxury Industry
Long gone are the days of easily spotted, plasticky fake bags perched atop folding tables on New York City's Canal Street. Instead, the modern counterfeit bag is a near-perfect replica, or "reps," to use the more cloak and dagger term you'll see in the underground market. And Gen Z's shift to replicas could pressure luxury margins long-term, The Wall Street Journal reported recently, detailing the shadowy market of "superfake" handbags. Market Data Shows Gen Z's Reticence to Buy Luxury The luxury sector may be seeing its first revenue pressures as Gen Z pulls back: According to the Journal, data from consulting firm Bain & Co. shows younger consumers spent $5 billion less on luxury in 2023 than the previous year. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — While the data can't definitively identify the cause, the decline suggests one or both factors: budget constraints, or a growing preference for high-quality counterfeits, according to the Journal's analysis. "People are starting to realize how good these fakes are getting" Online communities of replica handbag enthusiasts have been reacting to the article, including lurkers and buyers from the "Repladiesdesigner" subreddit, which was specifically called out by the Journal: "It's crazy how far 'super fakes' have come and they really are just as good as the original in many cases. The difference in price makes it an easy choice for many," one user writes. "I also bought Hermes authentics in [the] past but now I'm buying high tier reps." "It's true that some people are just starting to realize how good these fakes are getting," writes another Repladiesdesigner member. "Honestly, with [the] right seller and the right eye, you can snag a bag that looks better than [the] original." Trending: $100k+ in investable assets? – no cost, no obligation. Customers use resources like the subreddit to find sellers, who then move their business off Reddit and onto encrypted apps like WhatsApp and Telegram. According to the Journal, this direct-to-consumer sales model floods shipping ports with untraceable single packages, making it much easier to evade the traditional method of bulk interception of counterfeit goods at customs. Resellers Going High-Tech to Spot Superfakes Indeed, superfake handbags are so indiscernible from their luxury counterparts that designer goods resellers like The RealReal (NASDAQ:REAL) have adopted forensic-level authentication methods: According to the Journal report, the company is implementing XRF technology to analyze the metal composition of bag hardware and X-ray machines to inspect internal structures. The RealReal Director of Authentication Hunter Thompson tells the Journal that counterfeiters may flawlessly replicate a bag's exterior but often overlook subtle interior details, like the way a nail head is hammered what of the brands themselves? How are they fighting back? According to the Journal, in the case of the largest luxury brand, the answer is: meekly. LVMH Moët Hennessy Louis Vuitton, the world's largest luxury conglomerate, spent $11 billion on advertising in 2023 but just $45 million on anti-counterfeiting efforts. It may be that fakes are viewed as a foot-in-the-door toward genuine purchases, but the industry should probably wise up to the reality that superfakes are becoming legitimate competitors — and luxury's pricing power may be at risk. Read Next: Here's what Americans think you need to be considered 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? REALREAL (REAL): Free Stock Analysis Report This article The Rise Of 'Superfakes': Why Ultra-Realistic Designer Knockoffs Are Disrupting The Luxury Industry originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
6 days ago
- Business
- Forbes
Billionaire Mike Ashley's Frasers Hit By Higher Labor Costs And Drop In Luxury Sales
Mike Ashley's retail empire is estimated to be worth $5.5 billion. (Photo by Carl Court/Getty ... More Images) Retail giant Frasers Group blamed the government's tax-hiking budget for adding to its labor costs at a time when it also had to grapple with a challenging retail market. The group, owned by British retail billionaire Mike Ashley, reported on Thursday that revenue for the year to April 27 dropped 7.4% to £4.93 billion ($6.6 billion). Frasers attributed the decline to 'challenges in the luxury market' combined with the closure of its unprofitable stores. More than half of the group's revenue is derived from its 'UK Sports' division, which recorded a 7.2% fall in sales. Its 'Premium Lifestyle' unit, which accounted for just over 21% of its total revenues last year and includes brands like Flannels and House of Fraser, saw its sales tumble by almost 15%. But the retailer expressed a note of optimism that the market is on the mend. 'Following an especially weak period after last year's budget, both U.K. consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said. Despite the drop in revenue, Frasers still managed to report an improvement in its underlying pre-tax profits that came in at £560.2 million, a 2.8% rise from a year earlier. In December, Frasers had downgraded its profit forecast for the fiscal year to between £550 million and £600 million, citing weak consumer confidence and tougher trading conditions. It also said at the time the government's budget would add another £50 million to it labor costs, which it confirmed on Thursday was indeed the case. Frasers's CEO Michael Murray, said, 'I'm pleased with our performance this year, despite the headwinds caused by last year's budget.' Since the Labour government unveiled its budget in October, businesses groups have repeatedly warned that changes, such as the payroll tax hike and minimum wage increase, would force them to cut jobs and raise prices. And data from the Office for National Statistics (ONS) published on Thursday supports the warnings. The U.K.'s unemployment rate rose to 4.7% in the three months to May. That's the highest rate in four years. The number of job vacancies has fallen continuously for three years. Britain's inflation rose last month to 3.6%, which is well above the central bank's target of 2%. Frasers said it's still facing cost pressures, but it's 'working hard' to mitigate these by using more artificial intelligence and sustaining a robust gross margin. Frasers accelerated its international expansion over the past year, announcing partnerships in Australia, Asia, the Middle East and Europe. The group's strategic investments included upping it stakes in Hugo Boss, and Murray joined the board of the German fashion house. Murray became CEO of Frasers in 2022, taking over from his father-in-law, Mike Ashley, stepped down from the company's board later that same year. Ashley has a current net worth of $5.5 billion, according to Forbes Real-Time Billionaires List. Ashley began building his retail empire at the age of 18, when he founded Sports Direct in 1982, a business that he turned into Britain's largest sporting goods retailer. He expanded his group of businesses over the years through series of investments and acquisitions, including House of Fraser and department store chain Flannels.
Yahoo
6 days ago
- Business
- Yahoo
Why CEO Pay Is Always Moving Higher in Fashion — and Corporate America
Life in the corner office might be full of ups and downs — but when it comes to the multimillion-dollar pay packages corporate chiefs get, it's mostly up. WWD's annual pay study looked at nearly 50 of the largest publicly traded companies with fashion-industry ties and found 25 executives who logged pay packages valued at more than $10 million in 2024. More from WWD Cynthia Erivo in Ralph Lauren, Lily Collins in Stella Jean and More Striped Looks at 2025 Wimbledon Joey King Puts a Breezy Summer Twist on Wimbledon Style in Ralph Lauren's Braided Barely There Sandals Prime Day 2025 Went Bigger on Discounts for Fewer Products It is an exercise that, this year at least, cast a spotlight on the people in charge of the sector-leading giants. David Simon, chairman, chief executive officer and president of Simon Property Group — the dominant U.S. luxury mall owner — led the list with a stock-heavy package valued at $61.3 million. And the rest of the top five included heavyweights in their own fields, including Amazon CEO of worldwide stores Doug Herrington (with a package valued at $34.1 million), Walmart CEO Doug McMillon ($27.4 million), Ralph Lauren Corp. executive chairman and chief creative officer Ralph Lauren ($24.1 million) and TJX Cos. Inc. CEO Ernie Herrman ($23.4 million). All together, the — let's say Golden 25 — were paid $485 million last year, on top of the $393 million they made in 2023 — that's a 23.5 percent increase for the tip of the U.S. fashion pay pyramid. Much of that two-year take of $878 million is money that exists only theoretically. That's because executive pay includes oodles of stock and option awards that only pay off if the company's shares perform and targets are met. And there's really no telling how much CEOs and top executives ultimately take home once all the options are cashed in. But with a top-line figure approaching $500 million for just the top 25 earners last year, the answer would seem to be 'enough.' Even so, CEOs carry a lot of responsibility, traveling ceaselessly and coming under constant scrutiny while navigating what is currently a very dicey consumer market. 'Their jobs and what they get paid for is to keep the ship on course, but to also instill not only a positive corporate culture, but enthusiasm and inventiveness,' said Elaine Hughes, board adviser and former CEO of search firm E.A. Hughes & Co. 'Their biggest challenge is, in the past 10 years since technology has literally upended communication — how do you harness that [new technology] to enhance your brand?' Hughes said. 'The other big issue is supply chain, and this was long before [trade war] tariffs were put into place. Even one of those CEOs knows it's not like the old days where everyone rushes to China. Now it's global sourcing.' Executive pay stirs up a range of emotions — most often envy and outrage from outside and, on the inside, frustration from CEOs and board members setting their pay that compensation reported to the Securities and Exchange Commission doesn't reflect take home pay and is tied to the performance of the company. Any leadership rundown in U.S. business also underscores a continuing lack of diversity with white men holding most of the top jobs and therefore gaining most of the sweet rewards. And while the fortunes of brands and retailers go up and down, CEO pay seems to keep going higher. Twenty years ago, Simon made only $814,179 while building his mall company, no one at Amazon made more than $8 million and Walmart's CEO registered pay of just over $12 million. Lauren logged more than $17.8 million in compensation in 2004. But the CEO of TJX at the time made less than $3 million. The job of running all of those businesses has only become more complex over the last two decades, but CEO compensation has been on a kind of steady march higher in part to how corporate boards set pay. The process starts with a review of compensation at a company's peers. Wanting to run with the pack, boards then look to set the pay for their CEO at the median of that group for the following year. That gives the appearance that they're targeting a kind of market-decided middle. But going for the median skews pay over time. 'Invariably, that's just going to push that median up and up because by definition, when you're targeting the median, half of the companies should be higher and half should be lower,' said Roy Saliba, managing director at ISS-Corporate, the Rockville, Md., data and analytics provider. 'But if everyone is doing the median, then over time, that just continues to creep up.' So some of the increase in CEO pay packages is 'mechanical,' according to Saliba, 'but some of it is really just related to performance. As companies grow, you expect pay to grow for the position. And then the question always is — is it appropriate? 'Is the increase appropriate relative to the performance that the company is delivering?' he said. 'There's no simple answer to that question.' But Saliba did have a way to start: By stacking the change in CEO pay against their company's total shareholder return. ISS analyzed 151 fashion and related companies in the Russell 3000, looking only at CEOs who had been in the top job for at least the last two years. The study found that median CEO pay rose 6.3 percent to $8.2 million last year. Looking at the medians, salaries were up 2 percent, bonuses were generally flat, stock awards rose 6.2 percent and options, when granted, increased by 2.9 percent. Against that, the stock market performance of the companies resulted in an 8.9 percent increase in total shareholder return. So shareholder return grew slightly faster than pay last year, giving the growth rates a certain symmetry. That leaves just the raw size of the typical CEO pay package, which boards, employees, competitors, customers and everyone else still has to get their head around. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
Telegraph
09-07-2025
- Business
- Telegraph
Is Burberry back? What the British house is (finally) getting right
The global luxury market is in crisis, and few brands are inured from precipitous sales declines. As the UK's most prominent luxury brand, Burberry has suffered as much as any. Like its most venerable customer, Queen Elizabeth II, the outerwear label founded by Thomas Burberry in 1856 has endured many anni horribiles. A global slowdown in demand, the scrapping of VAT-free shopping and rising labour and material costs led to profits plummeting by 117 per cent, and May's announcement of the loss of 1,700 jobs – almost a fifth of the workforce – including 170 at its West Yorkshire factory. But if a week is a long time in fashion, three months is an eternity. Since then, shares in Burberry have doubled in value, rising from 654p in April and currently trading hands for 1,252p, valuing the company at £4.5 billion. Ironically, for a brand that trades so heavily on Britishness, the man responsible for turning around its fortunes is American. And also expensive. Joshua Schulman, who succeeded former Versace boss Jonathan Akeroyd as CEO last July, received almost £2.6 million in his first nine months in the job, and is on course to receive a bonus worth 300 per cent of his £1.35 million salary, taking his earnings to £5.6 million if his performance targets are met, excluding a potential £3.6 million bonus if he doubles Burberry's share price in three years and re-enters the FTSE 100. Eye-watering as these figures might be, Schulman seems to be proving that he's worth it. After seasons in the doldrums, and rumours of creative director Daniel Lee being replaced, Burberry seems to be turning a corner. 'After years of stylistic experimentation and inconsistent results, Schulman is taking the brand back to its roots: British heritage, iconic garments, visual consistency,' notes luxury brand strategist Armando Zuccali. 'It's refocusing on key outerwear garments and communicating a more authentic, grounded identity. In a luxury market that's slowing down and searching for stability, Burberry's move is strategic: betting on emotional memory, quality, and timeless authority.' Here's a deep dive into what it's doing right It's redefining Britishness We all know Burberry is British. We also know that Britain is obsessed with class. While Burberry has always been adept at aligning itself with upper crust Englishness (Princess Margaret and the Mitford sisters were frequent show references) it's had a chequered (or check patterned) history with its more working class roots. In the early 2000s, it frantically tried to distance itself from its associations with football casuals after its checked scarves and bucket hats became popular on the terraces. After EastEnders actress Daniella Westbrook was photographed wearing head to toe Burberry in 2002, the classic house check all but disappeared from the catwalk. Not any more. The house check is back, and Burberry is wisely marketing itself as a broad, classless and more diverse church, platforming black actors (Michael Ward, Jodie Turner Smith, Ncuti Gatwa), sports stars (Ramla Ali, Bukayo Saka) and musicians (Stormzy, Little Simz) by casting them in its ad campaigns. Where once it presented a narrower view of Britain, now it's as multicultural as it ought to be. It's controlling the weather Not even God can control the British weather, whose vagaries are far more unpredictable than most. Burberry has turned these vagaries into a strength, 'owning' them with an aplomb that has made customers sit up, take notice – and ideally, buy a Burberry trench coat. Last October, it launched an ad campaign titled 'It's Always Burberry Weather', riffing on the notion that rain isn't so much a soggy inconvenience as an excellent reason to reach for its classic trench. The strategy played straight into Burberry's history, founded as it was to provide practical outdoor attire. It was Burberry who in 1888 patented gabardine, the water-resistant fabric that revolutionised rainwear. As a reminder of these roots, Burberry umbrellas have since been prominently featured in fashion shows, window displays and shop floors, after Schulman questioned why none were for sale, pointing out that customers were more likely to buy a £500 umbrella than a £3,000 trench. It's working with the nation's sweethearts It's always nice to see Kate Moss in an ad campaign (she's appeared in 18 of Burberry's), but Burberry is casting its net much wider than its previous blonde, 'English Rose', aristocratic remit. Recent campaigns have included Olivia Colman, Kate Winslet and Richard E Grant, well-loved faces who resonate with an older demographic. The latter starred on the house's catwalk in February, alongside actor Jason Isaacs. They've also activated fond core memories by drawing on popular British rom coms: for summer 2025, a short film starring Winslet made reference to that classic Christmas watch, The Holiday (2006), with Winslet appearing in front of a wisteria-clad doorway. This clever storytelling builds an emotional connection. It's connecting with Gen Z Like it or not, we're living in the influencer age, which means that ad campaigns, fashion shows and promotional events should be optimised for their potential to be shared and go viral. Gen Z is as glued to its phone as its parents: the difference being it's more voracious in 'liking' and sharing content, be it an Instagram Story or a TikTok video. It's this demographic which makes clothes matter to a wider audience than the one invited to a fashion show. Having fashion critics' approval is important, but so too is reach. Burberry's front rows featuring the younger Gallaghers (Liam's children Gene, Lennon and Molly; Noel's daughter, Anais) are Instagram gold, as is the stunt of placing a human dressed as an equestrian 'knight' (a Burberry emblem) front row. Event-wise, it's ploughed every facet of Britishness, from hosting a pub quiz in a London 'boozer' to ensuring a presence at the Chelsea Flower Show. Most impactful of all was its festival campaign, featuring Liam Gallagher, Goldie, Alexa Chung and Cara Delevingne speaking fondly about mud dressed in Burberry raincoats and wellies. On Instagram, it's currently posting content to its 20.1 million followers from Ibiza. At this point, all it needs to be mindful of is overkill. It's focusing on core products All the feel-good ad campaigns in the world won't work if the product isn't strong, and after several mis-steps, creative director Daniel Lee is finally approaching the top of his game. Plaudits to Burberry for not firing him as had been rumoured: no-one wants another round of musical chairs, and Lee clearly has talent, having been hugely successful at Bottega Veneta, where he worked (and increased profits) during his four year tenure. Lee took up his role in 2022: his most recent collection, shown in February, was well-received, and wisely focused on outerwear and other core products for which the brand is best loved. But in such a price-sensitive climate, it would be a mistake to hike prices any further. Yes, it's a luxury brand, but some items are still overly expensive: £850 is steep for a small quilted canvas bag, while £2090 is even steeper for a fairly lacklustre leather 'Rocking Horse' shoulder bag. By lowering the price of its £450 check triangle bikini, the Gen-Zedders who love it might actually have a hope of affording it.
